CANADA FX DEBT-Ukraine tensions keep C$ confined
* Canadian dollar at C$1.0987 or 91.02 U.S. cents * Bond prices higher across the maturity curve By Leah Schnurr TORONTO, May 5 (Reuters) - The Canadian dollar was little changed against the greenback on Monday, hemmed in by the continued tension in Ukraine and weak Chinese manufacturing data. Investors were also wary of taking aggressive bets with some key domestic economic data on tap later in the week, including March trade balance figures and the April unemployment report. Ukraine sent a new special forces unit into the southern port city of Odessa, following a weekend of violence that killed dozens. "Markets are very much in risk-off mode and we're seeing investors and traders look toward safe-haven asset classes on the questionable escalation of tensions over the weekend in Ukraine," said Scott Smith, senior market analyst at Cambridge Mercantile Group in Calgary. "It seems at this point that Ukraine is one potential action away from an all-out civil war." Risk appetite has been bruised in recent months as investors have watched tensions escalate in the region. The Canadian dollar was at C$1.0987 to the greenback, or 91.02 U.S. cents, slightly weaker than Friday's close of C$1.0980, or 91.07 U.S. cents. Overnight, data showed activity in China's manufacturing sector contracted for a fourth month in a row in April, underscoring the view that China's economy has lost some momentum. The loonie is often affected by data from China, which is the world's second-largest economy and a major consumer of natural resources. The economic data at home this week will be watched for what impact it may have on the direction of Bank of Canada monetary policy. The central bank has taken a neutral stance since last October and has flagged its concern about weak inflation and exports. Trade balance numbers will be released on Tuesday, while the labor market report will close out the week on Friday. "The big thing people are watching for tomorrow are the trade the balance numbers. They're going to be a big driver, with the Bank of Canada focusing so much on export growth," Smith said. Canadian government bond prices were higher across the maturity curve, with the two-year up 1 Canadian cent to yield 1.061 percent and the benchmark 10-year up 9 Canadian cents to yield 2.342 percent. (Editing by Peter Galloway)
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